On June 16, the National Development and Reform Commission issued Document No. "NDRC Price [2017]1152," clearly announcing an increase in benchmark electricity prices for coal-fired power plants. The key details are as follows:

Effective July 1, 2017, the special fund for industrial enterprise restructuring previously collected from power generation companies will be abolished. Additionally, the collection rates for the National Major Water Conservancy Project Construction Fund and the Post-Relocation Support Fund for Large and Medium-Sized Reservoirs will each be reduced by 25%. The freed-up electricity price margin is being used to increase the benchmark tariff for coal-fired power plants. , easing the operational challenges faced by coal-fired power generation companies.  

Additionally, the National Development and Reform Commission has requested that price authorities at all levels follow the principles outlined above. Please expedite the development and submission of a specific plan to adjust benchmark grid-connected electricity prices for coal-fired power plants, ensuring it is reported to our Commission (Price Department) for record-keeping by June 22, 2017. Provinces (regions, and municipalities) that are about to complete the first round of pilot reforms in transmission and distribution pricing should ensure smooth coordination with their adjusted pricing schemes.

On July 5, the Henan Provincial Development and Reform Commission took the lead in issuing the "Notice of the Henan Provincial Development and Reform Commission on Matters Relating to the Rational Adjustment of Electricity Pricing Structure." Yu Fa Gai Jia Guan [2017] No. 707 ), the benchmark on-grid electricity price for coal-fired generating units in Henan Province will be increased by 2.28 cents/kWh (including tax).

The benchmark electricity price for desulfurized coal has been increased, which is positive news for both ground-mounted and distributed solar power plants.

For ground-mounted power plants and fully integrated distributed generation systems connected to the grid, an increase in the price of desulfurized coal will lead to lower national subsidies, thereby mitigating the impact of delayed subsidy payments.

For self-consumption distributed power plants, competitiveness will further strengthen since the subsidy is fixed at 0.42 yuan/kWh!

The feed-in tariffs for distributed photovoltaics are divided into two categories:

1. "Self-Consumption with Surplus Power Sent to the Grid" Model

Let’s take Beijing as an example to illustrate this. Suppose you’re setting up a distributed photovoltaic project at a shopping mall in Beijing. The mall currently pays commercial electricity rates, which are divided into peak, flat, and off-peak periods.

2. "Full-Grid Feed-In" Model

As the benchmark photovoltaic electricity prices for "full-grid feed-in" decline, the lower rates in the "self-consumption with surplus power fed into the grid" model are now more prominent. Electricity price for surplus power fed into the grid “It has already approached or even surpassed "Full-Grid Parity" benchmark photovoltaic electricity price.

It's clear that if the benchmark electricity price for desulfurized coal is raised, then The price advantage of "self-consumption with surplus power fed into the grid" will become even more pronounced.

Since the nationwide benchmark coal-fired electricity prices have not yet been issued, we are using the data from the last time instead. This article, based on the classification of photovoltaic benchmark electricity prices into three resource zones, examines The latest benchmark electricity prices for desulfurization across all provinces have been compiled.

Explanation:

If parts of a certain province are Ⅰ Class resource areas, Some regions are II For resource categories, they are categorized under Ⅰ In the resource class area.

Table 2： Ⅰ Latest benchmark desulfurization electricity prices for provinces in the resource-based category